Which of the following is an example of a public good ?
Correct answer: C. national defense
- A. hot dogs at a picnic
- B. Whales in the ocean
- C. national defense
- D. apples on a tree in a public park
Explanation
National defense is non-rival because one person's protection does not reduce protection for others, and it is generally non-excludable. Hot dogs and apples are private goods, while whales are a common resource.
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About Public Finance
Government revenue and expenditure are analysed through taxation, public borrowing, budgets, subsidies, transfers and public debt. The topic explains how fiscal policy affects resource allocation, income distribution, economic stability and growth, while distinguishing direct from indirect taxes, progressive from regressive taxation, and public goods from goods supplied by private markets.
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